Office space occupancy remains high in the Philippines

The Philippines' office space occupancy rate reached 80 percent in the first half of 2025, making it the third-highest in the world, according to a report by GMA News, quoting PRIME Philippines.

PRIME Philippines executive vice president Cholo Florencio said the country's rate was behind Singapore's 88 percent and India's 85 percent. It was also higher than the global average of 70 percent, the United States' 62 percent, and Europe's 60 percent.

Florencio attributed the occupancy rate to the business process outsourcing (BPO) sector, which reported an annual growth rate of 7 percent to 8 percent, increasing demand from the government, and the high adoption of flexible working arrangements.

In Metro Manila alone, the occupancy rate reached 85 percent this year, up from 84 percent in 2023. "I think we will be able to sustain our momentum in terms of adding a bit of occupancy levels. The challenge really is when more buildings will be left by the online gaming companies," Florencio said.

Florencio noted a decline in office space takeup, especially from Philippine offshore gaming operators (POGOs) since the COVID-19 pandemic, and vacancies are expected moving forward following the ban.

"There has been a very sharp decline ever since the pandemic. As you all know, the pandemic really triggered everything. It's unfortunate we've heard a lot of negative stories about criminality, about scams that have really affected the POGOs here," he said.

Florencio said developers should offer more to prospective locators such as including more benefits for them to take up space, like building more amenities.

Florencio said the country will be able to sustain the office occupancy rate as demand is still picking up from occupiers. "Demand can also translate to co-working facilities, so it's not just the traditional office space you're seeing right now. There's consistent demand for co-working spaces, because co-working also technically is part of the office sector," he said.